3.10 Lean Management

What is Lean Management?

a methodology that focuses on minimising waste while simultaneously maximising productivity and value for the end customer

What are the 7 key areas of wastes to be reduced?

transport, inventory, motion, waiting time, overprocessing, overproduction, defects

What is Pull?

where customer demand determines the rate of production products are only produced when a customer places an order.

Advantages of Pull (+ Efficiency (3) & Effectiveness(1))

waste is reduced, cost of inventory is reduced, stock is less likely to be damaged. minimising costs therefore increasing business profits

What is One Piece Flow?

where work in progress moves smoothly from one operation to the next, one piece at a time

Advantages of One Piece Flow (+ Efficiency (2) & Effectiveness (2))

minimised waiting times, reduced waste. higher quality products, improved customer satisfaction therefore increase of market share

What is Takt?

where the production rate aligns with customer demand

Advantages of Takt (+ Efficiency (2) & Effectiveness(1))

reduced idle time, increased productivity. improves customer satisfaction

What is Zero Defects?

striving to eliminate errors throughout production or rectifying an error before the product moves to the next stage

Advantages of Zero Defects (+ Efficiency (2) & Effectiveness (3))

reduced wastage, reduced errors. high quality products, improved customer satisfaction, increased sales